Joint Development Division

OEWD’s Joint Development Division works on behalf of the Mayor and the City of San Francisco to manage large public and private real estate development projects with the goal of maximizing the creation of public benefits such as affordable housing and open space. Our team negotiates with private partners to leverage private investment for public good, often using negotiated entitlement contracts called Development Agreements.

Our team places particular emphasis on addressing San Francisco’s need for housing at all levels of affordability in order to serve our existing and new residents. OEWD works with development projects of all sizes to maximize the provision of affordable housing in partnership with other City departments; such as the Planning Department, Public Utilities Commission, Recreation and Parks Department, Public Works Department, and the Board of Supervisors. In the creation of new affordable housing, public open space and public benefits, OEWD’s development agreement projects are vetted through oversight activities; public hearings, public engagement, citizen advisory groups, and with final approval by the Board of Supervisors.

The Joint Development Division also serves as the City’s lead negotiator during the complex process of transferring and redeveloping underutilized public parcels, and acts as the principal conduit between federal, state and City departments, the private sector, and the many community interests involved. By structuring these projects as public-private partnerships, the City can create critical public benefits without diverting scarce resources from basic civic needs such as public health, police and fire services.

New Housing Units in the OEWD Pipeline

19

New Housing Units

42

Affordable Units

8

Affordable Units

Approved Projects

New parks and open space, jobs, and affordable housing

In the past year, the Joint Development division has managed a number of impactful projects through the City’s legislative approval process. These projects are now poised to begin delivering the community benefits that OEWD negotiated as part of their approval, such as transportation and infrastructure improvements, new open space, affordable housing, and workforce training.

The almost one acre Daggett Plaza will be opening in Fall 2016 and is located in the Showplace Square area, right at the foot of Potrero hill, on 16th Street where it meets 7th Street. The site used to be home to the Gliden Paint factory. The surrounding area is lacking open space and is slated for substantial new development. Daggett Plaza will be a fully public open space on public land. It is being built and will be maintained by the adjacent property owner/developer, 1010 Potrero. The plaza will be proposed for stewardship under the new City-managed Plaza Program. Daggett Plaza will allow the Showplace area to realize one of the main community infrastructure needs, more open space to support local growth. The development project will also add 90 units of permanently affordable housing and 7,000 square feet of PDR.

Daggett project

Daggett Shared Public Way and Plaza:

Total area almost 0.9 acres

Daggett Plaza

Daggett Street shared public way

Amenities and design features include:

Ample seating opportunities

A fenced-off dog run

“Mission Marsh Bears”, a public art piece

One-way “Shared Public Way” to create a pedestrian-oriented environment while allowing vehicle access

5M Project

40% affordable housing

600,000+ square feet of office space

241 affordable housing units

600 residential housing units

50,000 square feet of new public open space

5M will be a mixed-use development that includes 688 units of housing, 600,000 square feet of commercial space, including office and neighborhood serving retail as well as over an acre of public open space and a dedicated 12,000 square feet of non-profit arts space on site. The focus is on a project that connects with the local community and builds on the vibrancy of the neighborhood through activated open spaces, streets, and alleyways.

The project sponsor, Forest City, received approval from the Board of Supervisors in December 2015, which included providing 241 units of new affordable housing, and over $65million dollars in fees and benefits which will be directed back into the surrounding community for schools, parks, workforce development, the Old Mint, and senior housing.

Construction of the first phase of Schlage Lock began construction in June 2016. The construction marks the transformation of the former vacant industrial site into a livable, mixed-use urban community designed to encourage walking, biking, and the use of mass transit with and a network of well-designed open spaces and public amenities that blends into the urban fabric of the community.

Schlage Lock is a 20 acre site that includes major residential and open space development in the Visitacion Valley neighborhood. The site formerly housed the Schlage Lock factory until it closed in 1999. Since then, the property has stood vacant as the project sponsor, Universal Paragon Corporation (UPC), worked with the City and the community to plan a new use for it, a complicated process made even more challenging by the economic downturn in 2010 and the elimination of San Francisco Redevelopment Agency funding in 2011.

Fifteen percent (15%) of the residential units will be made affordable to low-income households, and the additional 85% will be market rate units which are expected to be priced within reach of middle-income San Franciscans. This plan is memorialized in a development agreement, negotiated between UPC and the City, which was represented by the Office of Economic and Workforce Development working in partnership with the Planning Department and the Visitacion Valley/Schlage Lock Advisory Body. The project was reviewed and approved by the Planning Commission, the Recreation and Parks Commission, the Municipal Transportation Agency (MTA) Board of Directors, the San Francisco County Transit Authority (SFCTA) Board of Commissioners, and the San Francisco Public Utilities Commission (SFPUC) and was ultimately unanimously approved by the Board of Supervisors.

The project is estimated to take up to 10 years to fully build out and complete and set to officially break ground in 2016.

Schlage Lock Project

Retail Space: Up to 46,700 square feet with a new grocery store

Historic Building: Approximately 18,000 square feet, a portion for community use

Community Open/Green Space: Over two acres

Pedestrian and transit infrastructure improvements

All new roads and utilities (water, sewer, power)

Extensive environmental remediation

Golden State Warriors Arena Project

18,000 seat pavilion

over 3,000 permanent jobs created (including event staff)

over 2,500 temporary construction jobs

200 games, family shows and events per year

Triggers development of the 5.5 acre Bayfront Park

Robust public transportation including Caltrain, Muni, and AT&T Park ferry, plus funding for transit service and traffic enforcement in the surrounding neighborhood

Certified LEED Gold of higher construction

In 2012, San Francisco began actively working with the Golden State Warriors to develop a world-class, state-of-the-art event center and mixed-use development project at Piers 30-32. In April 2014, the Warriors purchased an undeveloped 11-acre lot on Mission Bay Blocks 29-32. The project completed the public approval process in December 2015.

In addition to the creation of an estimated 3,000+ permanent jobs and 2,500+ temporary/construction jobs, the project will generate hundreds of millions of dollars in new economic growth and activity for the City as well as over $14 million in annual tax receipts and help to accelerate development of an area of Mission Bay that has been dormant for decades.

The Golden State Warriors arena plans to open in time for the 2019-2020 basketball season.

In February 2013, the Moscone Center expansion project finalized financing with the passage of the Moscone Expansion District (MED) and approval by the City to issue certificates of participation and commercial paper. Two thirds of these issuances will be repaid by hotel assessments from the MED and one-third will be repaid by the City. The construction and design cost of the project is estimated at $500.0 million. The City began utility work in November 2014 and hosted a groundbreaking ceremony in May 2015. Work will continue in planned phases around booked conventions through 2018. Expansion of the Moscone Center will create more than 3,400 construction jobs, nearly 3,500 permanent jobs, and generate an additional $20.0 million in annual hotel tax revenue for the City. In addition to over 515,000 square feet of exhibition space, the project will provide public amenities in the form of 12,000 square feet of new open space, 25,000 square feet of improvements and enhancements to pedestrian safety and access, including the widening of sidewalks, new retail, and outdoor dining.

Moscone Center Expansion

over 515,000 square feet of exhibition space

more than 3,400 construction jobs

nearly 3,500 permanent jobs

additional $20.0 million in annual hotel tax revenue for the City

12,000 square feet of new open space

25,000 square feet of improvements and enhancements to pedestrian safety and access

Wholesale Produce Market Expansion

$100.0 million expansion and renovation

long-term 60-year master lease agreement

30 produce wholesalers and distributors

10 buildings over an 18-acre site

approximately 382,000 square feet of space

800 full time employees

The San Francisco Wholesale Produce Market has been providing food to residents for 137 years. Located in the Southeast sector of San Francisco, the Market is an association of dedicated professionals, united at one distribution center, committed to being the Bay Area’s leading source of produce and produce information. The Market offers fresh produce to local and regional grocers, specialty and upscale retailers, restaurants, hotels, caterers, and convention facilities. It currently houses 30 produce wholesalers and distributors in 10 buildings over an 18-acre site—providing approximately 382,000 square feet of space. It employs 800 full time employees and has gross annual revenues of approximately $500 million. The City led the negotiation of a long-term 60-year master lease agreement for the City-owned land on which the San Francisco Wholesale Produce Market operates, The full build out envisions a three-phase, $100.0 million expansion and renovation. The first building–901 Rankin Street—is now complete, with two new tenants, Good Eggs and Mollie Stones, set to occupy the full 82,000 square feet.

In 2000, the San Francisco elevated Central Freeway was removed north of Market Street, and the State transferred 22 parcels from under the freeway to the City. The San Francisco Office of Economic and Workforce Development (OEWD) has led the effort, on behalf of the City, to smooth the transition from freeway to boulevard. The Octavia Boulevard Project coordinates land use and transportation investments in a way that secures long-term economic growth.

Example of successful transit-oriented in-fill development project

Mixed-use residential, primarily five-stories

California Pacific Medical Center (CPMC)

Cathedral Hill Campus and St. Luke’s Campus in the Mission

730,888-gsf

274-bed acute-care hospital

underground parking garage

The site of the new Van Ness and Geary Campus Hospital occupies a full city block – bounded by Van Ness Avenue, Geary Boulevard, Franklin Street, and Post Street – and contains approximately 106,000 square feet of lot area.

The new hospital is currently under construction and when complete, will be a 274-bed acute-care hospital. The new building will be approximately 226-foot tall, with 730,888-gsf, and an underground parking garage. All vehicular access to the patient drop-off and parking levels will be mid-block from Geary Boulevard and Post Street, with emergency vehicle access from Franklin and Post Streets. CPMC is seeking LEED Certification for the Van Ness & Geary Campus Hospital.

Looking Ahead

Active Projects and Programs

We are working collaboratively with City stakeholders and development sponsors to achieve the City’s goals of increasing the supply of affordable housing and bringing valuable public benefits to residents.

The United States Old Mint was designed by Alfred B. Mullet, Supervising Architect for the U.S. Treasury Department and opened in 1874. One of the official repositories for the United States’ gold reserves, the building held one-third of the nation’s supply of gold in 1934. It was designated a National Historic Landmark in 1961 – the highest level of recognition given by the federal government to historic places. The Mint was placed on the local register (Landmark #236, Appendix A to Article 10 of the Planning Code) in 2003 based on its association with economic and governmental history of San Francisco and the nation. Because of its historical significance, the City is required to comply with the Secretary of Interior’s Standards for Rehabilitation and the Guidelines for Rehabilitating Historic Buildings on any alteration or rehabilitation of the Mint. The building features 100,000 square feet (approximately 75,000 are useable) on three floors.

OEWD announced a long term partnership with the California Historical Society (CHS) who was selected through a Request for Proposals (RFP) process for the Old Mint Restoration Project –. The project is led by OEWD to renovate the 140-year old structure and restore it as a publicly-accessible cultural facility. In collaboration with CHS, the City will develop a comprehensive reuse proposal for the City-owned National Historic Landmark building located at 88 Fifth Street. In the short term, the OEWD is also working to bring a range of positive uses and activation to the building, as well as ensure the Mint’s maintenance and security until the long-term restoration project can begin.

Old Mint Restoration Project

100,000 square feet

approximately 75,000 are useable on three floors

renovate the 140-year old structure

publicly-accessible cultural facility

Public Land for Housing

Project Sites:

Balboa Reservoir

4th and Folsom

1950 Mission

Balboa Park Station Upper Yard

OEWD and Planning are collaborating with the City’s enterprise agencies to redevelop publicly-owned land into housing. Using innovative strategies, these development opportunities seek to provide revenue to the enterprise agency while creating other vital public benefits such as affordable housing. By structuring these projects as public-private partnerships, the City can create critical wide-reaching public benefits such as parks and open space, jobs, and affordable housing.

The Southern Bayfront is a collection of dynamic neighborhoods, vibrant communities, and a large and multi-faceted waterfront, spanning from Mission Creek to Candlestick Point – almost 5 miles along the southeastern waterfront. Proposed investments seek to revitalize underutilized waterfront properties, transform them into assets for the community, and create new places to live, work, and create on former industrial, non-residential land.

OEWD is leading development negotiations with each of the proposed projects in the Southern Bayfront. In coordination with key City departments, OEWD is developing a negotiating framework for these projects to guide the major new investment towards community and citywide public benefits such as affordable housing, open space, and sea level rise protections.